Global oil prices on Tuesday further inched higher as the United States and Iran continued dilly-dallying over holding the next round of peace talks while keeping the Strait of Hormuz closed.
Global oil
benchmark Brent crude was hovering towards the higher side of $109 per barrel during Asian trading hours, gaining over 1.1 percent. The US’ WTI crude also breached the $97 per barrel mark, higher by around 1 percent.
The rise came after Iran proposed to resume peace talks but sought to postpone discussions on its nuclear programme. According to reports, the United States President Donald Trump was not willing to accept the demand.
“They cannot have a nuclear weapon. Otherwise, there’s no reason to meet,” Trump had said on Sunday, speaking to Fox News.
However, Trump’s national security team is reviewing the plan.
During the first round of peace talks, which ended without any breakthrough, Iran’s nuclear programme was one of the main contentions between the two sides, apart from Tehran’s demand of imposing toll on Hormuz.
The two sides had agreed on a two-week ceasefire on April 8, which was later extended indefinitely by Trump.
However, the Strait of Hormuz, which has now become the main flashpoint of the conflict, has remained closed since the start of the war.
While the US has blockaded Iranian ports, Iran has continued to choke the Strait after the US Navy seized its vessel.
About a fifth of the world’s energy supplies used to pass through the Strait of Hormuz before the war. From over 100 vessels transiting through the waterway each day before the war, less than 10 vessels are able to get through the passage since the hostilities began.
At $109 per barrel, oil prices are trading over 65 percent higher than the pre-war levels of $65–70 per barrel.
